NNPC Pushes Gas Pipeline Projects Despite Lower May Earnings

The Nigerian National Petroleum Company Limited (NNPC Ltd.) recorded progress on two major gas pipeline projects in May 2026 despite posting lower revenue and profit during the month.

The company's May 2026 Operational and Financial Report showed that work continued on the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipeline. Construction, equipment installation and pre-commissioning activities advanced on the AKK project, with early gas delivery to Abuja planned for 2026.

The report also said post-pullback pre-commissioning activities and tie-in works continued on the OB3 pipeline, which is expected to be fully commissioned before the end of the third quarter of 2026.

These projects are central to efforts to improve gas transportation within Nigeria. Once completed, they are expected to increase domestic gas supply and support electricity generation as well as industrial activities that depend on natural gas.

Nigeria has placed gas development at the centre of its energy strategy in recent years. The Federal Government sees natural gas as an important fuel for power generation, manufacturing and other industries while also supporting economic activity.

The AKK Gas Pipeline is designed to move natural gas from southern Nigeria to the northern part of the country. The project is expected to supply gas to industries, power plants and manufacturers, helping to improve access to energy in several states.

The OB3 Gas Pipeline is intended to remove major transport constraints within Nigeria's gas network. The project is expected to improve the movement of gas between production areas and demand centres, making supply more reliable.

Earlier this year, NNPC Ltd. introduced its Gas Master Plan 2026, which targets daily gas production of 10 billion cubic feet. In March, the company also announced plans to increase Nigeria's gas reserves from about 210 trillion cubic feet to about 600 trillion cubic feet as part of its long-term development programme.

Production stays steady while sales fall

Even with progress on gas infrastructure, the report showed that the company's financial performance weakened in May.

Revenue fell to N4.335 trillion in May from N4.97 trillion in April. Profit after tax also declined to N462 billion from N481 billion recorded in the previous month.

The report linked the lower earnings to reduced crude oil and natural gas sales. Crude oil and condensate sales dropped to 18.95 million barrels in May from 23.65 million barrels in April. Natural gas sales also fell to 4,921 million standard cubic feet per day from 5,044 million standard cubic feet per day in the previous month.

Despite the weaker sales figures, production levels stayed largely stable. Combined crude oil and condensate production averaged 1.73 million barrels per day during May, while natural gas production stood at 7,774 million standard cubic feet per day.

Statutory payments continue

The report also showed that NNPCL continued to make statutory payments to the Federation.

Between January and May 2026, the company remitted N4.858 trillion through taxes, royalties and other statutory obligations. These payments form an important part of government income and support public spending.

The operational report presents a picture of a company that is maintaining production, advancing key gas infrastructure and meeting statutory obligations, even though revenue and profit declined during the month.

Completion of the AKK and OB3 pipelines is expected to strengthen Nigeria's gas transport network and improve domestic gas supply, supporting the country's long-term energy development plans.